Fraser Property in HK$1.6b share deal with Gemdale

PUBLISHED : Wednesday, 26 September, 2012, 12:00am
UPDATED : Wednesday, 26 September, 2012, 3:33am

The controlling shareholder of Frasers Property (China) has agreed to sell 56.05 per cent of the firm's issued share capital to mainland developer Gemdale Corp in a deal worth about HK$1.65 billion.

In a filing with the Hong Kong stock exchange, Famous Commercial, a company incorporated in Hong Kong and a wholly owned subsidiary of Gemdale, is offering to buy 3.84 billion shares at 43 HK cents each from FCL (China), the controlling shareholder of Frasers Property.

FCL (China), a company incorporated in Singapore, is a wholly owned subsidiary of Frasers Centrepoint, which in turn is a wholly owned subsidiary of conglomerate Fraser and Neave.

The offer represents a premium of 14.7 per cent over the last trading price of 37.5 HK cents before trading was suspended on September 17 pending the release of the announcement.

Application has been made to the stock exchange for resumption of trading today.

Gemdale, which is listed on the Shanghai Stock Exchange, is primarily engaged in the development and operation of properties on the mainland.

The developer has diversified into 20 cities in an expansion covering the eastern, southern, northern, central, northeastern, northwestern and southeastern parts of China.

Gemdale had a market capitalisation of 21.33 billion yuan (HK$26.22 billion) as of yesterday.

For the financial year to December 31, it recorded audited consolidated profit attributable to shareholders of 3.02 billion yuan.

"The offeror intends to continue carrying on the existing business of the group, including property investment, development and management of residential commercial and business park projects in Hong Kong and in the mainland," the announcement said.